CASE STUDY

One Year of Shopping AnliaFranco Expansion Value creation to our shareholders

Case Study MULT3

One Year of Shopping AnliaFranco Expansion Value creation to our shareholders 23.6% of the net investment already returned in 12 months On August 12 2009, Shopping AnliaFranco opened its first expansion, adding 11,663 m of GLA becoming the fourth largest shopping center of Multiplans portfolio.
1. 300 R$/ m

th

1. 800 R$/ m

35, 0%

1. 700 R$/ m

27,2%
1. 600 R$/ m

28,9%
30, 0%

1. 500 R$/ m

21,6%

23,6%

+22.2%
1.297 R$/m 1.222 R$/m

25, 0%

1. 400 R$/ m

20, 0%

+9.4%

+15.2%
1.061 R$/m

15, 0%

In the nine month period ended September 30, 2010, the shopping benefited from a higher pedestrian flow and sales growth of 37.1% compared to 9M09. The expansion alone in its first 12 months of operations has added R$3.7 million of Net Operating Income (NOI) for the Company, being 9.4% above the Companys disclosed plan. The expansion still shows a strong potential, with the current NOI/m of the mall, not including expansion, 22.2% above the first year NOI/m of its expansion.

1. 200 R$/ m

1. 100 R$/ m

10, 0%

1. 000 R$/ m

970 R$/m
5, 0%

900 R$/ m

800 R$/ m

0, 0%

1st Yr NOI/m (Planned)

1st Yr NOI/m (Real)

3rd Yr NOI/m Potential NOI/m (Planned) (SAF w/o expansion) NOI/Net Capex (Yield)

NOI (Expansion)

Expansion NOI/m and NOI as a % of Net Investment (Capex net of key money) SAF = Shopping AnliaFranco

Given the higher than expected NOI contribution of the project and the precise investments, the project has in its first year of operation already returned the equivalent of 23.6% of the investment net of key money, a spread 2.0% higher than planned. Based on the planned 3 year NOI figures, the Company expects the expansion to grow its NOI/m by 15.2% in the following two years. The potential value of an expansion To develop Shopping AnliaFrancos expansion, Multiplan committed R$15.7 million, net of key money. For comparison purposes only, if the Company would try to mark the expansion to market, it would possibly value an amount that by far exceeds this investment in Shopping AnliaFrancos expansion. Besides the direct cash flow generated by this expansion, it will also add value to the shopping as a whole, by creating higher pedestrian flow, which generates higher sales and ultimately higher NOI. The table below expects to show (i) the value of the expansion given different kinds of real caprate and its expected 3 year NOI, and (ii) how the value could be leveraged by a 1% to 10% increase in the original shopping center NOI. With a 9% cap-rate, the expansion alone could be valued at R$47.6 million, or 3 times the net investment. If a 5% cap-rate is assumed and that the NOI of the original shopping center would improve by 10%, the value would be 7 times the net investment. This is how the Company plans to create value for its shareholders.
rd rd

Case Study MULT3

MTE Interest - Real Cap-Rate 3rd Year Expansion NOI (R$4.3M) Expansion NOI +1% SAF NOI Expansion NOI +2% SAF NOI Expansion NOI +5% SAF NOI Expansion NOI +10% SAF NOI Net Investment (CapEx-CD):

5.0% 85.7M 88.8M 91.9M 101.0M 116.3M 15.7M

6.0% 71.5M 74.0M 76.5M 84.2M 96.9M

7.0% 61.2M 63.4M 65.6M 72.2M 83.1M

8.0% 53.6M 55.5M 57.4M 63.1M 72.7M

9.0% 47.6M 49.3M 51.0M 56.1M 64.6M